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certain local interests in Hong Kong/the recent rapid expansion

of the Communist education programme. His telegram did not

state his intention of taking any immediate action against Communist schools but it canvassed the idea that a tough line

might soon be necessary.

The Governor undertook to inform us

of any specific moves he might have in mind.

3. Mr. Cradock in Peking has drawn attention to the

disquieting implications of the Governor's telegram (Peking

telegram No. 813). He points out that any action on the lines

S suggested by the Governor would constitute an important change

in our policy on the freedom of the Communists to conduct

their education programme in Hong Kong. Mr. Cradock emphasises

the following points:-

(a) Action against Communist schools as such is a new phenomenon and to be distinguished from the closure of Chung Wah which

was de-registered because of bomb-making.

(b)

We should meet full-scale Chinese opposition to any

campaign against Communist schools.

There would be

serious trouble in Hong Kong and repercussions on Sino-

British relations.

(c) We should be invalidating assurances previously given to the

Chinese (e.g., regarding the freedom of Communists in

Hong Kong to study the works of Mao, etc.).

(a) We should reverse the present trend towards slightly

improved relations with China.

Mr. Cradock sets out his arguments at considerable length. The essence of his thesis is to question whether Communist

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